Transfer of Part
General
A transfer of part (TP) arises in two situations, namely (1) when a new right subordinate to part or all of a registered right is created and (2) when a new registered proprietor acquires title to part of the land held under a registered title. In either case, the application form will indicate that the deed affects part of a registered title, and the deed type will be one that transfers title to property or creates a new interest (i.e. grant of a lease). The result of such an application is twofold: the relevant right or part is removed from the title sheet for the existing registered title (the ‘Parent Title’) and a new title sheet is created for the new right created or part transferred.
Where an application other than the creation of a new right or a transfer of title (e.g. a deed of restriction of a registered security, or a standard security accompanying the transfer of the whole title) relates to part only of a registered title, the application is classed as a dealing with whole.
Common Dealings Over Parent Title
Many different types of dealing with whole can be submitted against parent titles. A selection of the most common is included below, together with the action to be taken.
Documents Submitted With Application
Documents that affect only the parent title submitted with TP application
If documents affecting only the parent title (e.g. discharge or standard security over the whole subjects, deed of conditions etc.) are lodged with the TP application, they are regarded as dealings with whole of the parent title and a separate application for registration of the deed against the parent title is required. Care must be taken in deciding whether the TP application should be processed prior to the dealing with whole. The dealing with whole must not be backdated to a date prior to the receipt of the application form(s). If the TP has been taken on, then difficulties may arise, particularly with deeds of conditions (e.g. where the deed of conditions contains rights benefiting the TP). In that instance, the title should be referred to a senior caseworker to take appropriate action.
Documents affecting both the TP application and other registered titles, or titles in the sasine register
Where a document is submitted which affects both the subjects in the TP application and subjects belonging to third parties (e.g. deed of servitude, deed of variation of burdens), care should be taken to ensure that any appropriate applications are made against affected title sheets and/or, where necessary, recording in the sasine register is arranged.
Creation of Subordinate Right
A transfer of part may result from the creation of a subordinate right, such as a lease, out of the parent title. For example, the effect of a long lease or a long sub-lease is that two interests are created. These interests are that of the granter or lessor, who becomes the landlord, and that of the grantee or lessee, who becomes the tenant. A new title sheet has to be opened in respect of the tenant's interest regardless of whether the extent of the land covered by the grant amounts to the whole, or only part, of the land in the parent title.
Transfer Where No Subordinate Right Created
The following forms of transfer fall into this category:
- Disposition (conveyance),
- Contracts of excambion of parts of registered rights,
- Partial assignations of leasehold interest and
- GVDs affecting part of registered subjects.
In each of these cases, the whole part is removed from the granter's title and a new title sheet opened. The examples given above are not intended to be exhaustive.
Description of subjects
The description in the deed of transfer of part (and any related deeds such as Deeds of Restrictions, etc) must be sufficient to enable the part to be identified (most commonly a plan is submitted) and the deed must also bear the title number of the granter's interest. Section 26 of the 2012 Act contains the statutory requirements for the description.
The deed of transfer of part should normally describe the subjects as part of the granter's subjects using a description in accordance with section 26(1)(d) of the 2012 Act - see Plans Further Guidance section Deed Plan Must be Acceptable for more details. Any subsequent deed describing the part transferred must, in terms of 26(1)(c), bear a reference to the title number of the TP title sheet. In cases where that deed, or any subsequent deed, is executed before the new title number is known, the Keeper considers that the requirements of that section will be met if the deed sufficiently describes the individual part and bears the number of the parent title sheet. The most satisfactory course is to repeat the description contained in the transfer of part, but a common law description of the breakaway subjects will not be rejected.
A description which refers to a plot number on a development plan approved by the Keeper will be acceptable, provided that such approval has not been withdrawn as at the date of registration of the transfer (further details on development plan approval are at Development Plan Approval). A plan may still be attached to the deed, but is not essential, however reference must be made to the title number of the builder's title.
Error in Parent Title Number
Intake staff will create an application or applications against the parent title number or numbers quoted on the application forms. However, it may become apparent at a later stage of examination either that the parent title number quoted is incorrect or that the application does not refer to all the parent title numbers which are affected. Occasionally, the error in the application record may have been caused by RoS staff.
The deed cannot be amended and if there is an error in quoting the correct parent title number then the application should be rejected.
The general principle is that an application against a corrected or additional title number must not be given an earlier registration date than the date on which the application was amended or created. In the interests of expediency, this rule may be departed from in a limited number of circumstances. However, in each case registration staff must seek the authority of an officer of senior caseworker level or above, who will assess the level of the risk involved.
Requirement To Update Parent Title Sheet - General
The title sheet of the parent title must be updated to reflect every removal of an interest or land therefrom. The following examples illustrate some of the aspects which may require to be updated:
Property section
(i) General removal entry or additions to existing schedule of leases/removals/exceptions;
(ii) Amendments to the property description;
(iii) Rights, servitudes &c. granted and/or reserved in the deed of transfer, may have to be entered as burdens or for the benefit of the subjects/interests remaining in the parent title;
Proprietorship section
(iv) Amendment to the designation of the registered proprietor(s);
Securities section
(v) Partial discharges;
Burdens section
(vi) General entries in respect of rights of lessees;
(vii) Deletion of entries which no longer subsist and/or which do not affect the interest remaining in the parent title (e.g. notices of payment of grant which have been carried forward to the TP title for the part they affect).
There are several types of removal entries to be entered on the parent title. These are discussed in further detail at Styles for Removal Entries on Parent Title in Relation to Transfers of Part below. The type used is dependent on the deed of transfer, the interest/land being dealt with and the nature of the development. Any existing schedule of feus in the property section of a parent title sheet should not, in general, be amended.
Completion of Transfer of Part Title Sheet - General
All entries in the title sheet of the parent title and all matters referred to in the deed of transfer and other deeds lodged with the TP application, in conjunction with the information supplied by plans staff, must be considered. In the case of developing titles, the registration officer is given precise guidelines on how to complete the registration.
The registration officer must check that all pending applications over the parent title prior to the date of registration of the TP have been completed. For instructional TPs appropriate instructions as to what action, if any, the registration officer should take will be noted on the record card relevant to the parent title. The following sections provide more detailed guidance in relation to each part of the title sheet.
Pertinents, Rights in Common and Servitudes on Transfer of Part
All rights and servitudes in TPs (properly constituted in terms of current legislation) fall to be entered in the property section of the title sheet of the benefited property. However, the Keeper does not warrant that the right is of a kind capable of being a valid pertinent, or that if of a kind capable of extinction or variation without registration against the title of the benefited property it has not been so varied or extinguished.
The rights already entered on the parent title, either at length in the property section thereof or by reference to an entry in burdens section, such as in a deed of conditions, should be repeated at length in the transfer to the purchaser of only a part. Therefore the conveyance in favour of the applicant should set out at length the rights that are to be carried with the part sold.
In terms of section 12 of the Title Conditions (Scotland) Act 2003, where part of a benefited property identified in terms of said act is conveyed then it shall no longer form part of the benefited property unless specific provision is made otherwise. However if the subjects being transferred comprise the whole area that has previously been identified as the benefited property in relation to rights, servitudes, or enforcement of real burdens, then there is no requirement to re-state the situation in the current transfer.
Servitude rights
A servitude right created on a transfer of either the burdened or benefited property requires to be dual registered against both interests in accordance with the requirements of the Title Conditions (Scotland) Act 2003 to be properly constituted. Prior to the commencement date of said Act it was possible for a servitude to exist as an overriding interest against the burdened property and could be noted on the title sheet for that property.
For practical purposes, duly constituted servitudes will always be included in the burdens section of the burdened property title sheet, irrespective of the method of constitution. In this way, it will be ensured that the right is not overlooked when dealing with future transactions against either property.
Rights in common in deeds of conditions
If an existing deed of conditions is referred to for rights, and the deed contains rights, the property section of the title sheet for the plot of ground will merely include a reference to the burdens section entry for the deed of conditions.
If, however, the deed of conditions referred to includes rights in common areas, the extent of which is defined by reference to a future uncertain event, the following instructions on amenity areas in developments must be followed when the TP forms part of a new development.
Rights of a trivial or obvious nature
No entries are required on either the benefited or burdened property title sheets for rights which are of a trivial or obvious nature. Examples of such rights are:
- rights of way over adopted roads
- rights of drainage that are undefined (or ill defined and vague) on the deed plan
Warranty
While rights are not warranted, if it can be seen that the granter has no title to the subjects over which the rights are granted (i.e. where the burdened property falls outside the parent title or the subjects have been previously removed from the parent title with no corresponding reservation) the rights will normally just be omitted. However some investigation may be necessary in case the granter is also proprietor of the burdened property. In such a case for instructional casework the application should be referred back to the officer who prepared the record card or, for non-instructional casework, the settler should consider if the application is valid or falls to be rejected.
Mines and MInerals on Transfer of Part
The position regarding minerals is often obscure and separate guidance is given on both title to minerals and Reservations of Minerals from a title on the Property Section Information page.
It is important that consideration be given to any notes on the parent title sheet in respect of minerals and also to any express exception or inclusion of minerals contained in a TP. The following schedule lists possible combinations of situations that may arise, with regard to information about minerals contained in the parent title and the deed of transfer. The procedures to be adopted by the legal registration officer are set out in the third column thereof.
If the minerals are registered as a separate tenement then a reference to the title number for that interest must be included on the title sheet for any plot of land (i.e. both the TP and parent title, if not already included).
The inclusion or exception of minerals in a deed of transfer may be qualified by the words ‘if any’ or ‘so far as we have right thereto’. The use of such words detracts from the certainty of the existence of the minerals or rights thereto and therefore in the absence of other evidence, the title sheet should remain silent as to any inclusion while containing the appropriate note and entry as to any exception.
Where, in a parent title, there is no reservation of the minerals in the property section but there is a mineral reservation in a deed of conditions affecting the subjects, or in the conveyances (dispositions) from the parent title, a note, similar to the examples given below, should be included in the property section of the parent title.
Where nothing else remains in the parent title, there is the possibility that a title to the minerals exists and accordingly the title sheet should not be closed.
Securities Over Parent Title on Transfer of Part
The general rule in registration of title is that anything entered or noted in the title sheet affects the whole subjects in the title sheet, unless there is an express statement to the contrary. Consequently, where a security is shown in the securities section of the parent title it will be disclosed in any title sheet created for a part of the original secured subjects unless it has been discharged wholly or just in respect of the part to be sold.
Burdens Affecting Transfer of Part
Provided the legislative requirements for the creation of real burdens are complied with all new burdens validly constituted in a TP are set out in the burdens section of the TP title sheet. Details of the deed creating the real burdens will also be added to the property section of the benefited property title sheet in the form of a Schedule of Real Burdens, in most cases this will be the parent title.The schedule will identify the deed that created the real burdens and describe the burdened and benefited property or properties. In addition to the property section entry, an entry for the deed will be made in the burdens section of the benefited property title sheet, and the burdens that can be enforced will be set out at length.
When dealing with TPs, the situation frequently arises where there are reciprocal rights and burdens affecting both the subjects disponed and also the subjects (or part(s) thereof) remaining in the parent title. Both title sheets will therefore require entries in both the burdens section and also a schedule of enforcement rights in the property section.
If, on the registration of subsequent TPs that are affected by burdens against the parent title created in earlier TPs, the subjects therein are not disponed subject to the earlier burdens, the reciprocal entry will nevertheless automatically be imported from the parent title sheet into the dispositions, by virtue of the reference to the parent title number in the descriptions thereof. If the applicant considers that a burden in a parent title does not affect the property being conveyed then this should be explained as additional information to the application form.
Different considerations apply to leases - see below.
The preceding paragraphs contain general rules which should be followed in the straightforward case. Statutory, and more frequently, practical considerations dictate departure from these rules in certain cases, particularly where burdens and rights were created in deeds registered prior to 28 November 2004. For some of the practical considerations see the following paragraphs and also Record Cards for Instructional Transfers of Part below.
Prior to the introduction of the Title Conditions (Scotland) Act 2003 on 28 Nov. 2004, burdens created in recorded or registered deeds were, at that stage, personal against the granter and did not become real until the burdened subjects were conveyed subject to these burdens. However, when burdens were created over the parent title in favour of the part transferred, as the Keeper had already guaranteed the rights by entering them in the new title sheet for the part transferred, an entry of the counterpart burdens in the parent title sheet ensured that they were not overlooked when dealing with the subsequent transfer(s) of the burdened part(s).
Leases
No entry will be made on a landlord's title sheet to disclose any conditions of lease that the landlord has a right to enforce, or obligations in favour of the lessee which he undertakes.
There will, however, be inserted in the burdens section of the landlord's title an entry in the following form:
The rights of the tenants under the Leases specified in the Schedule of Leases in the Property Section are burdens on the subjects in this Title.
Obsolete burdens
Section 3 of the Law Reform (Miscellaneous Provisions) (Scotland) Act 1985, which came into effect on 30 December 1985, provided that it shall always have been competent to impose conditions in an assignation or deed of conditions affecting leasehold property. Prior to that date any entry creating such conditions would have included the following note:
'Note: The subjects in this Title being Leasehold, the foregoing conditions have not been validly created real conditions’.
Where such a note exists it should be removed from the title sheet.
Styles for Removal Entries on Parent Title in Relation to Transfers of Part
The type of removal entry used is dependent on the deed of transfer, the interest/land being dealt with and the nature of the development, as set out below.
Last Removals
When plans identify what they believe to be a transfer of the whole of the land remaining in the parent title, they pass it to a senior caseworker to consider how the application is to be progressed and whether the parent title can be closed.
In straightforward cases the last removal is then returned to the plans officer who will map and settle it and return it for legal settle. On completion of the case by a legal officer the parent title should be updated or closed as guided by the senior caseworker.
Record Cards for Instructional Transfers of Part
The record card is a general guide that sets out clear and concise directions as to the methods of examination to be followed, and entries to be made, on title sheets of TPs out of the same parent title. By following the instructions thereon, all title sheets out of the same parent title can be prepared in similar form.
Once prepared, the record card enables all TPs covered thereby to be dealt with by registration officers of an appropriate grade trained in the TP process.
The record card is a general guide to follow. It is not to be regarded as set precedent for all TPs and it is the responsibility of the registration officer processing the TP application to satisfy themselves that the property they are dealing with is covered by the guidance on the record card.
Examination before map by legal registration officer
When a developing title has been identified by plans, the first step towards production of a record card is the examination before map by a senior legal registration officer. The plans registration officer will consult with the appropriate legal registration officer as to the style of mapping to be adopted, not only on the first removal but also on the subsequent transfers of part from the parent title.
Plans staff should take great care to provide the first removal from each phase of a development or the first removal of each distinct type from any development (e.g. house plot or flat). The legal registration officer should also indicate which references are to be carried forward from the parent title.
The first removal(s) are returned to the plans registration officer for completion of map and settle. When this has been done, they are returned to the appropriate legal registration officer who settles the cases and completes the record card. The relevant registration officers are then able to settle the subsequent TPs with reference to the said record card.
On completion of the last removal from any parent title, the record card will be archived on the parent title, unless an electronic copy is held on archive.
Registers of Scotland (RoS) seeks to ensure that the information published in the 2012 Act Registration Manual is up to date and accurate but it may be amended from time to time.
The Manual is an internal document intended for RoS staff only. The information in the Manual does not constitute legal or professional advice and RoS cannot accept any liability for actions arising from its use.
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